From Risk to Recovery: A Systematic Literature Review of the Economics of Disasters in the Philippines

Abstract

This study systematically reviews the economics of disasters in the Philippines, synthesizing research from 2012 to 2023 to identify key themes and gaps in the literature on how recurring hazards affect economic outcomes. Using a structured literature search across leading academic databases, the review identifies 20 empirical studies on natural disasters, including typhoons, hydrometeorological, and geological events. The findings demonstrate that disasters have a substantial impact on national and local economies, notably through GDP losses, increased public spending, sector-specific disruptions, and the deepening of poverty, especially among vulnerable groups. Resilience and adaptive strategies, disaster financing, and recovery mechanisms emerge as critical themes in both the literature and policy recommendations. However, data fragmentation, particularly at the local level, and limited longitudinal analysis impede the development of targeted and inclusive interventions. The review stresses the need for more granular, region-specific studies and improved economic risk management in disaster-prone contexts. By integrating findings on direct and indirect impacts, from infrastructure losses to shifts in social welfare, the study provides actionable insights for researchers, practitioners, and policymakers seeking to enhance Philippine disaster resilience and socioeconomic recovery, including the piloting and empirical evaluation of risk-transfer mechanisms, such as microinsurance, in high-risk regions.